SENAI, MALAYSIA – V.S. Industry Berhad Originating Summons for Inspection of Accounting Records Filed by VSIB and Datuk Beh Kim Ling Against Lim Chang Huat, Lim Chee Kon, Chow Chun Pooi@Chow Chan Leong and NEP Holdings (Malaysia) Berhad

1. Reference is made to the announcement dated 22 August 2022 made by the Company. The terms herein shall bear the same meaning a defined in the said announcement.

2. As announced by the Company, the High Court had on 10 June 2022 ordered NEP to:
2.1 open its Accounting Records (including its subsidiaries) for inspection by the Company and DB’s Auditor and/or by the Auditor’s colleagues within 8 working days from the date of being served with the inspection order and the said inspection shall be carried out on working days between 9:30am and 5:00pm and shall continue for the next 30 working days thereafter;
2.2 make available the Accounting Records for the Auditor and/or his colleagues to make copies and/or take extracts; and
2.3 supply to the Company and/or DB copies of the documents listed in Annexure B to the inspection order within the inspection period above.

["inspection Order"]

3. Pursuant to the Inspection Order, the Auditor’s colleagues commenced inspection of the Accounting Records of NEP and its subsidiaries in NEP’s premises on 1 July 2022 and the inspection ended on 12 August 2022.

4. However, the Company alleged that NEP has frustrated and/or stultified the Inspection Order by failing to comply with the terms of the Inspection Order as set out in paragraphs 2.1 – 2.3 above. LCH, LCK, CCP and Kong Kian Huat (“KKH”) as NEP’s officers have each failed to ensure that the Inspection Order is complied with by NEP.

5. The Company had therefore on 21 October 2022 filed for leave to initiate committal proceedings against NEP, LCH, LCK, CCP and KKH. Arising from the leave granted by the High Court on 13 December 2022, the Company commence committal proceedings on 27 December 2022 against NEP, LCH, LCK, CCP and KKH for breach and/or disobedience of the Inspection Order [“Committal Proceedings”].

6. On 19 June 2023, the High Court Judge heard the Committal Proceedings and reserved decision to be delivered on 17 August 2023.

7. The Company wishes to announce that the High Court Judge had on 17 August 2023 concluded that the charges of contempt brought by the Company have been proven beyond reasonable doubt and found NEP, LCH, LCK, CCP and KKH guilty of contempt of court as follows:
7.1 NEP has breached the Inspection Order by failing to comply with the terms of the Inspection Order as set out in paragraphs 2.1 – 2.3 above;
7.2 LCH, LCK, CCP and KKH as officers of NEP are guilty for contempt of court for failing to ensure the compliance of the Inspection Order by NEP;
7.3 The conduct of NEP, LCH, LCK, CCP and KKH has intrinsic tendency to interfere with the administration of justice.

[NEP, LCH, LCK, CCP and KKH are collectively known as “Contemnors”]

8. After finding that the Contemnors are guilty of contempt of court, the High Court Judge was supposed to proceed with hearing of mitigation factors and thereafter passing appropriate sentence against the Contemnors on 17 August 2023. This has been adjourned to 24 August 2023 arising from the Contemnors’ counsel’s application on the ground that LCH (who was present in Court) had to be sent to hospital due to breathing difficulties.

9. Any further development(s) of the above matters will be announced in due course.

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